The February ADP National Employment Report, developed by ADP Research in collaboration with the Stanford Digital Economy Lab, reveals a 77,000 job increase in private-sector employment. The report, based on anonymized payroll data from over 25 million U.S. employees, also shows a 4.7% year-over-year rise in annual pay.
Findings from the Report
1. Private-Sector Job Growth Slows
- 77,000 new jobs were added in February, indicating a moderation in hiring.
- The report captures real-time employment trends using payroll data across industries.
2. Annual Pay Growth at 4.7%
- The year-over-year wage increase reflects continued wage pressures.
- ADP’s Pay Insights measure tracks nearly 14.8 million monthly pay changes, up from 10 million at launch.
3. Hiring Hesitancy Amid Economic Uncertainty
- Policy uncertainty and reduced consumer spending may be contributing to slower hiring and layoffs.
- Employers are exercising caution in workforce expansion.
Economic Context & Labor Market Trends
Nela Richardson, ADP’s Chief Economist, commented on the report’s findings:
“Policy uncertainty and a slowdown in consumer spending might have led to layoffs or a slowdown in hiring last month. Our data, combined with other recent indicators, suggests a hiring hesitancy among employers as they assess the economic climate ahead.”
The February ADP Employment Report provides a high-frequency, near real-time analysis of U.S. labor market trends. With slower job growth and measured pay increases, the data signals a cautious hiring outlook as businesses navigate evolving economic conditions.
